Four individuals and one entity including the CEO of Indiabulls Ventures paid Rs 5 crore as settlement charges to the Securities and Exchange Board of India (SEBI) pertaining to a case of alleged insider trading in shares of the firm.
The applicants to the settlement t order were CEO and full-time director Divyesh Shah and his relatives Dravinaben L Desai, Vikram L Desai, and Sharwary V Desai, and Vikram L Desai HUF.
SEBI's order stated the entities involved had filed settlement applications with the regulator proposing to settle the pending enforcement proceedings without admitting or denying the finding of fact and conclusions of law via the settlement order.
The order stated that Divyesh had information about the firm's financial results before they were informed to NSE and BSE for the quarter ending March 31, 2018. The period of unpublished price sensitive information (UPSI) was from April 2, 2018, to April 23, 2018. He allegedly communicated the UPSI to his relatives who subsequently carried out the trade.
His relative Dravinaben is alleged to have made unlawful gains of Rs 1.22 crore from the trade.